Bharat Rasayan Q1FY27 Results: Net profit falls 16% YoY to ₹366.4 crore
- Standalone net profit declined 16% YoY to ₹366.4 crore in Q1FY27
- Revenue from operations fell 10% to ₹3,381.6 crore due to volume/mix pressures
- Operating margin contracted to 14.73% from 19.76% as input costs rose
- Board approved restructuring plan for BRL Finlease and Centum Finance entities
- Final dividend record date fixed for September 17, 2026
*this image is generated using AI for illustrative purposes only.
Bharat Rasayan reported a 16% year-on-year decline in standalone net profit to ₹366.4 crore for the quarter ended June 30, 2026. Consolidated net profit fell 6% to ₹372.3 crore, reflecting margin pressure amid softening operational efficiency.
The pesticides manufacturer saw revenue from operations drop 10% to ₹3,381.6 crore compared to ₹3,774.0 crore in the corresponding period of FY25. Operating margins contracted significantly, with the standalone operating margin falling to 14.73% from 19.76% last year. This compression was driven by higher cost of materials consumed, which rose to ₹2,349.9 crore from ₹2,147.6 crore despite the revenue decline.
What the Numbers Show
The divergence between revenue decline and expense growth highlights significant input cost inflation or mix shifts. While total revenue fell by nearly 10%, the cost of materials consumed increased by approximately 9%. Consequently, gross profit before other expenses shrank disproportionately, dragging down the operating margin by over 500 basis points. Additionally, other income dropped sharply to ₹56.2 crore from ₹71.0 crore in Q1FY25, further weighing on the bottom line.
Corporate Restructuring Proposal
The Board of Directors in-principally approved a proposal for restructuring involving Bharat Rasayan, BRL Finlease Limited, Centum Finance Limited, and their wholly owned subsidiaries. The move aims to rationalize the corporate structure, improve capital efficiencies, and enable focused management of distinct business verticals. Management has been authorized to engage legal, valuation, and financial advisors to finalize the scheme of arrangement.
Dividend and AGM Details
The company fixed September 17, 2026, as the record date for determining shareholder entitlement for the final dividend of 10% (₹0.50 per equity share) for FY26, subject to approval at the upcoming Annual General Meeting. The 37th AGM is scheduled for September 24, 2026. The register of members will remain closed from September 18 to September 24, 2026.
Financial Highlights
| Metric | Q1FY27 (₹ in Lacs) | Q1FY26 (₹ in Lacs) | Change |
|---|---|---|---|
| Revenue from Operations | 33,816 | 37,740 | -10.4% |
| Total Revenue | 34,378 | 38,450 | -10.6% |
| Profit Before Tax | 4,831 | 5,792 | -16.6% |
| Net Profit (Standalone) | 3,664 | 4,366 | -16.1% |
| Net Profit (Consolidated) | 3,723 | 3,966 | -6.1% |
| EPS (Basic) | ₹22.04 | ₹26.27 | -16.1% |
The company maintains a debt-equity ratio of 0.06 times, indicating a conservative leverage position. The current ratio stands at 4.69 times, suggesting strong short-term liquidity coverage.
Historical Stock Returns for Bharat Rasayan
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.78% | -3.83% | -2.38% | -17.54% | -50.97% | 0.0% |
How will the proposed corporate restructuring involving BRL Finlease and Centum Finance specifically impact Bharat Rasayan's capital efficiency and debt management in the near term?
Given the 9% rise in material costs despite falling revenue, what strategic measures is management implementing to hedge against input cost inflation or renegotiate supplier contracts?
Will the significant contraction in operating margins from 19.76% to 14.73% prompt a reassessment of the company's dividend payout policy for subsequent quarters?
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